Review the attached financial statement and related budget. Identify the significant variances. There are ten of them. Remember that a significant variance is one that deviates from the budget by more than $5\%.$ Once you have identified the variances, suggest two to three possible causes of each variance. Finally, make two to three recommendations on how you would try to resolve each variance as a manager. Revenue Actual$-$Budgeted $-$Variance

insurance revenue $$411,905$ $$465,222$

supplemental income $$26,502$ $$25,589$

other operating income $$5,682$ $$5,485$

Total Revenue $$444,089$ $$496,296$

Operating Expenses

Staffing RN salary $$148,999$ $$140,852$

RT salary $$37,459$ $$36,582$

PT$/$OT$/$ST salary $$26,212$ $$27,414$

administrative salary $$55,219$ $$56,211$

management salary $$25,145$ $$24,318$

housekeeping salary $$10,555$ $$10,555$

dietary salary $$5,500$ $$5,469$

Benefits health insurance $$6,182$ $$6,028$

life insurance $$464$ $$452$

dental insurance $$309$ $$301$

$403$b contributions $$12,364$ $$12,056$

education $$93$ $$90$

Taxes payroll $$9,273$ $$9,042$

workers comp $$77$ $$75$

FICA $$7,727$ $$7,535$

Medicare $$6,800$ $$6,631$

Social Security $$3,709$ $$3,617$

Administrative office supplies $$510$ $$500$

postage $$148$ $$150$

telephone $$355$ $$350$

marketing $$1,700$ $$1,500$

legal fees $$600$ $$100$

accounting $$207$ $$200$

travel $$56$ $$50$

liability insurance $$215$ $$215$

malpractice insurance $$2,658$ $$1,540$

mortgage $$3,500$ $$3,500$

property taxes $$105$ $$105$

Medical Supplies general medical $$1,450$ $$1,400$

pharmacy $$7,500$ $$4,800$

Oxygen & RT $$1,190$ $$1,200$

X$-$ray $$575$ $$600$

lab $$480$ $$500$

Dietary food $$1,545$ $$1,500$

enteral feedings $$4,700$ $$3,600$

Maintenance housekeeping supplies $$145$ $$150$

laundry $$95$ $$100$

groundskeeping $$0$ $$0$

snow removal $$380$ $$320$

Utilities electric $$362$ $$368$

water $$590$ $$588$

sewer $$240$ $$231$

garbage disposal $$152$ $$152$

shredding $$46$ $$47$

fuel $$199$ $$56$

cable TV $$189$ $$189$

internet service $$205$ $$205$

Total Operating Expenses $$386,183$ $$371,445$

Bad Debt Expense $$26,210$ $$26,523$

Total Expenses $$412,393$ $$397,968$

Net Income $$31,696$ $$98,328$